Turkey, Iraq to Sign One-Year Crude Pipeline Agreement, Minister Says

Turkey and Iraq are set to sign a one-year agreement within days to continue the operation of a major crude oil pipeline, Turkish Energy Minister Alparslan Bayraktar announced Thursday. The deal provides short-term certainty for a key energy export route from Iraq to international markets.

Details of the Agreement

Speaking during an official visit to Baghdad, Bayraktar confirmed the new pact would secure pipeline flows for the next 12 months. The current agreement between the two countries is scheduled to expire on July 27.

"We have brought the agreement that will cover the next 12 months to the final stage. We aim to sign it in the coming days," Bayraktar said in a statement. He affirmed that oil flow from Iraq to Turkey’s Ceyhan port on the eastern Mediterranean coast will continue. The minister's visit included meetings with Iraq Oil Minister Basim Mohammed and Iraqi Prime Minister Ali al-Zaidi to discuss broader energy cooperation.

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Context and Market Impact

The pipeline's operational stability is critical for oil markets, as it is a primary conduit for crude exports from northern Iraq. The route has faced significant disruptions in the past.

Operations were halted for two and a half years following an international arbitration court ruling. The court ordered Ankara to pay $1.5 billion in damages to Baghdad for unauthorized Iraqi exports that Turkey had handled between 2014 and 2018. The pipeline only resumed operations late last year, and this new agreement is a key step in normalizing its function and ensuring a reliable supply to Mediterranean refiners.